P/E ratio for Velocity Financial (VEL)
P/E ratio as of May 2024 (TTM): 14.1
According to Velocity Financial's latest financial reports and stock price the company's current price-to-earnings ratio (TTM) is 14.0787. At the end of 2022 the company had a P/E ratio of 9.65.
P/E ratio history for Velocity Financial from 2020 to 2023
PE ratio at the end of each year
| Year | P/E ratio | Change |
|---|---|---|
| 2022 | 9.65 | -35.9% |
| 2021 | 15.1 | -474.56% |
| 2020 | -4.02 |
P/E ratio for similar companies or competitors
| Company | P/E ratio | P/E ratio differencediff. | Country |
|---|---|---|---|
 New Residential Investment NRZ | N/A | N/A | 🇺🇸 USA |
 Ocwen OCN | -3.35 | -123.77% | 🇺🇸 USA |
How to read a P/E ratio?
The Price/Earnings ratio measures the relationship between a company's stock price and its earnings per share. A low but positive P/E ratio stands for a company that is generating high earnings compared to its current valuation and might be undervalued. A company with a high negative (near 0) P/E ratio stands for a company that is generating heavy losses compared to its current valuation.
Companies with a P/E ratio over 30 or a negative one are generaly seen as "growth stocks" meaning that investors typically expect the company to grow or to become profitable in the future.
Companies with a positive P/E ratio bellow 10 are generally seen as "value stocks" meaning that the company is already very profitable and unlikely to strong growth in the future.